Emerging market dynamics: risk perceptions, perceived usefulness and E-pharmacy adoption

Abstract

Purpose Despite the digital penetration in the larger consumer market, the adoption of e-pharmacy services is reported to be very low in emerging economies like India. In this context, the purpose of the current study is to examine the influence of consumers’ risk perception on their intention to purchase medicines/pharmaceuticals through online pharmacies. Furthermore, the study seeks to understand to what extent the perceived usefulness of online pharmacy mediates the relationship between different dimensions of perceived risk and purchase intention. Design/methodology/approach The study was conducted among a sample of 800 consumers in India who are familiar with online e-commerce. To ensure the homogeneity of the sample and hence the generalizations of results, inclusion criteria were set as not to include respondents who have made a prior purchase through e-pharmacy services. Self-reporting questionnaires were administered among the respondents, who were selected through a purposive and convenience sampling method. Measurement modeling and path analysis were done using IBM SPSS 23.0 and AMOS 24.0 to test the hypotheses and draw inferences. Findings Results revealed that consumers’ risk perceptions, such as financial, product, source and privacy risks, had a significant direct and indirect effect on their intention to purchase medicines through online pharmacies. India is the major universal provider of generic medicines. The insights gained from this study can help policymakers, corporates, consumers, distributors, retailers and marketing managers to frame effective strategies for improved usage of online platforms for procuring medications. Originality/value This study is pioneering in conceptualizing and testing a theoretical model linking consumers’ risk perceptions, perceived usefulness and intention to purchase through online pharmacies, particularly in the context of an emerging economy like India. Implications regarding facilitating and nurturing a conducive platform for online purchasing medicines and its outcomes are elaborated, thus striving to fill a gap in the existing literature. By examining the proposed framework through the lens of the technology acceptance model and theory of risk perception, this study seeks to add to the emergent literature on online pharmacies, especially in emerging economies with huge market potential.